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MANILA -- A key witness to a cancelled project to link the country by broadband technology surfaced past midnight Thursday, alleging that former elections chief Benjamin Abalos and First Gentleman Mike Arroyo pushed the price for the deal for kickbacks.

Rodolfo Lozada Jr., a former consultant for the National Economic Development Authority (NEDA) on the national broadband proposal, said Abalos wanted to secure $130 million in commission, which pushed the total project price from $262 million to $329 million.

The supplier was Chinese firm ZTE Corp., which Lozada claimed gave big advances to Abalos to get the project going.

Lozada said Abalos sought Mr. Arroyo’s help to transform the project from a build-operate-transfer scheme to one funded by a loan.

Since a ban on public works projects was in force due to the 2007 midterm polls, approval from the Commission on Elections is needed to pursue contracts.

Lozada read from a statement in an impromptu press conference at a high school in suburban San Juan, nearly two days after he was reported to have been abducted by unidentified men after arriving from Hong Kong.

“I have to say what I know so Filipinos will understand these things which affect their future,” said Lozada in a statement. ”Sometimes it is worth taking a risk for this country.”

President Gloria Macapagal Arroyo ordered the justice department to investigate persons who violated laws in connection with the cancelled national broadband network (NBN) project

Her statement came a day before the Senate grills Lozada in a public hearing.

Lozada gave himself up to Senate custody after his press conference.

Lozada said he was made to sign some affidavits, obviously referring to an affidavit which allegedly pointed out that he talked only to technicians about the ZTE deal, and some security requests “without really knowing” what they were.

National police chief Avelino Razon Jr insisted there were requests from Lozada and his sister to secure his arrival but he could not say why the family asked the Supreme Court on Wednesday to order the police and military to show Lozada.

“There was no abduction, no kidnapping,” said Razon. DMS